Important Clarification on Hostel Subsidy under Children Education Allowance Scheme

Shri.Venugopal, Inspector of Customs, Trichy Customs Commissionerate wanted to share this clarification with GConnect readers. Though what Mr.Venugopal says might look simple, it’s an effective clarification in the sense that children education allowance claims of employees in many offices were restricted to the extent of hostel fees only and the amount claimed by employees in respect of tuition fees paid were rejected when both hostel subsidy and tuition fees were claimed.

This is the information that Shri.Venugopal wanted to share:

When I claimed hostel subsidy and tuition fees under the new Children Education Allowance Scheme for my daughter, my application was restricted to hostel fees only initially citing Para 1(i) of Office Memorandum No: 12011/03/2008-Estt (Allowance) dated 02-09-2008, though I have paid tuition fees under various heads and produced the bills for the same. I could realize that the intention of the Government is only to ensure that CEA sanctioned is limited to Rs.36,000/- per year and the claim of employees for tuition fees as well as hostel subsidy is to be allowed subject to the overall limit of Rs.36,000.

Later when I made suitable representation citing the clarification issued by Government in this regard, my office admitted the claim and allowed me reimbursement of Rs.36,000/- which consisted of hostel subsidy and tuition fees.

I would like to reproduce the gist of my representation so that similar audits made could be tackled well by our readers.

(i) Hostel Subsidy means expenses incurred by the Government. servant if he has to keep his children in the hostel of residential school away from the station at which he is posted/or is residing. It may include expenses towards boarding, lodging and expenses as detailed in Para (e) of the original OM No. 12011/3/2008-Estt(Allowance) dt. 2.9.2008

(e) Tuition fee, admission fee, laboratory fee, special fee charged for agriculture, electronics, music or any other subject………

So, Government has clearly clarified that Hostel subsidy includes tuition fees and consequently the amount paid under heads applicable under tuition fees is to be reimbursed. The only condition Government wanted to impose was the total of Hostel subsidy and tuition fees claimed should not exceed Rs.36,000/-

Sir, I am working in Central reserve police force. My Son studying in nursary class in the academic year 2010-11 and his date of birth is 18/08/2007. I claimed CEA for my son but the same is rejected as my son is not completed 5 years age. Please clarify that I am eligible to claim the allowance or otherwise Thank you. – S. Kumar

Sir, I started my career as TGT English in Navodaya Vidyalaya Samit, an autonomous organisation run by Ministry for HRD. I was promoted as PGT English (in 2008) while I was working at Navodaya Vidyalaya, Warangal, AP and posted in Madhya Pradesh. My son was in class IX then and I left him behind as there was no Telugu language at my place of posting. After Class X (CBSE), I joined him in a college (affiliated Board of Intermediate Education, AP) in Warangal itself, thinking that it was a residential college. The college provides lodging facility to students but provides boarding through M/s AVR Hostel of the same town. I paid Rs.40,000 towards mess charges and was given bills in the name of this hostel. Can I claim hostel subsidy for the expenditure I have incurred towards mess charges for my son? I am told that my bills may be rejected as the college is not residential though it is a recognised college by the AP government. Please clarify. Thank you. – Prasad

You say The college provides lodging facility and then it can not be termed as residential. With certification from the school that your son is staying in their hostel and food is supplied by an external agency, we think you can claim the hostel subsidy up to Rs.32,000 per year

Fees in my childrens school is being collected under the head management salaries. However, the administration is not refunding the same, saying that it is not specifically mentioned as tuition fees. Could u please clarify the same?

What about the “term fee”. The “term fee” is taken twice in a year by the schools in Mumbai. But the claim is rejected citing that the word “term fee” is not mentioned in the order. Kindly guide us in this regard.

dear ravindra parepalli
all kinds of fees paid towards schooling except building fund/donations max 12000 per child perannum is reimbursible.The term Term fees also eligible . If Your admin is rejecting it is wrong

Dear Krishnamurthy,
Read your query. I want to clarify that you can claim only either hostel subsidy or tution fees at a time as per Original O.M. dated 2.9.2008 i.e. if you submit a bill for reimbursement of hostel subsidy, you cannot submit another claim for reimbursement of tution fees for the same ward. You are entitled to claim either hostel subsidy or tution fees for the same ward. However, hostel subsidy includes tution fees etc. as per the clarificatory O.M. dated 11.11.2008. OK

as per the dopt om both hostel subsidy and tuition fee cannot be mixed, if your daughter is studying in a hostel and paying both tuition fees and hostel subsidy, you canbe paid only hostel subsidy ceiling to Rs.36000- for example if you are paying 12,000- as tuition fee and 24,000- as hostel subsidy, if you claim for hostel subsidy you will be paid 24,000- if you claim for 12,000- you will be paid 12,000- now i searched all the oms issued by dopt

Sir, I wanted to know more about regarding this notification, on the above referred clarification O.M. dated 2-9-2008, point no.i it is clearly mentioned I an\m herewith quoting those lines of same text “However, bothhostel subsidy and Children Education Allowance cannot be availedconcurrently.” What it means please clarify, either tuition fees or hostel fees is only can availed for reimbursement

I paid Rs.2,50,000/- for my son who is doing pgdm, as tuition fee with the institute. Kindly let me know from you as per dop&T circular mentioned above in gconnect whether I will get reimbursed Rs,36000/- against tuition fee. I tell you he is not staying in hostel but he has paid Annual Tution fee Rs.2,50000/- in first year and 2,50000 in second year. In total I paid Rs,5 lakhs as tution fee for two years. Please advise me Whether I am entitled for reimbursement of Rs.36,000/- or not. I am a govt. servant. Please reply me on my email address given above.